Malaysian Automotive Association (MAA) president Aishah Ahmad said they had revised their 2020 vehicle sales forecast to 470,000 units from 400,000. An estimated 300,000 units are expected to be sold in the second half of the year.
The annual forecast is a 22% drop from 2019, when about 600,000 units were sold.
“The sales tax exemption will boost sales before the end of the Penjana scheme this Dec 31,” she said at a press conference today.
She added that hire purchase interest rates were also very affordable at the moment. “It is the right time to purchase vehicles.”
For the month of June, MAA recorded a 95% increase in sales when 44,695 vehicles were sold compared with 23,309 in May.
Their optimistic figure contrasts against the actual sales during the first half of the year.
A total of 158,876 cars and 15,799 commercial vehicles were sold in the first half of 2020 compared with 296,317 during the same period last year.
She attributed this to the implementation of the movement control order (MCO) from mid-March until mid-May 2020, when automotive companies ceased operations.
“Automotive companies were facing headwinds at the start of 2020 with the sudden change in the Open Market Value (OMV) valuation methodology used by the Customs Department from January 2020, resulting in companies facing delays in new car launches and disruptions in selling their vehicles.
“Demand for new motor vehicles was also slow due to economic uncertainties and erosion in consumers’ confidence then.”
On other industry trends, Aishah noted a 100% increase in sales of used cars compared with last year, with a notable hike in demand in the outskirts of Kuala Lumpur.
“Cars below RM30,000 are doing very well,” she said, adding that people were hesitant to use public transport at this time and felt safer to travel in their own cars.
She predicted good sales of luxury vehicles due to the sales tax exemption.
On a related matter, she said the end of the bank loan moratorium would impact vehicle sales after September, especially in the sale of lower-end vehicles.
“High-end vehicles will not be impacted, as people who can afford them will still be able to buy,” she said.